TSX rallies on energy gains; Goldcorp weighs

Wed Jul 11, 2012 5:00pm EDT
 
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By Jon Cook

TORONTO (Reuters) - Canadian stocks rose for the first time in a week on Wednesday, boosted by energy shares on hopes of further stimulus from the U.S. Federal Reserve. But gains were limited after the country's second-largest gold miner, Goldcorp Inc (G.TO: Quote), cut its outlook.

U.S. oil futures climbed when minutes from a Federal Open Market Committee meeting in June showed policymakers are open to buying more bonds to stimulate the U.S. economy, but conditions might need to worsen first.

The Fed last month expanded its latest effort to keep long-term interest rates low, announcing it would buy an additional $267 billion in long-term bonds with proceeds from short-term notes in a measure known as Operation Twist. But the market was anticipating more easing measures after Friday's disappointing jobs report.

"We didn't get anything new from the FOMC today," said Mike Newton, associate director and portfolio manager at Macquarie Private Wealth Inc. "It's a very benign day."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 32.42 points, or 0.28 percent, at 11,544.64. However, thin summer volume exaggerated moves and kept markets volatile.

"It's probably the normal reaction to four down days in a row," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

Seven of Canada's 10 main sectors rose, led by the heavyweight energy group, which advanced 1.7 percent.

The biggest movers on the energy side included: Suncor Energy (SU.TO: Quote), which climbed 1.8 percent to C$29.25, Cenovus Energy (CVE.TO: Quote), up 3.2 percent at C$33.28, and Canadian Natural Resources (CNQ.TO: Quote), up 2.4 percent to C$26.46.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch